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ABC Catering Received $800 Cash from a Customer for Catering

Question 175

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ABC Catering received $800 cash from a customer for catering services to be provided next month.Given the choices below,determine the general journal entry that ABC Catering will make to record the cash receipt.Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.


A)  Unearned Catering Revenue 800 Catering Revenue 800\begin{array} { | l | r | r | } \hline \text { Unearned Catering Revenue } & \mathbf { 8 0 0 } & \\\hline \text { Catering Revenue } & & 800 \\\hline\end{array}
B)  Cash 800 Accounts Receivable 800\begin{array} { | l | r | r | } \hline \text { Cash } & 800 & \\\hline \text { Accounts Receivable } & & 800 \\\hline\end{array}
C)  Cash 800 Unearned Catering Revenue 800\begin{array} { | l | r | r | } \hline \text { Cash } & 800 & \\\hline \text { Unearned Catering Revenue } & & 800 \\\hline\end{array}
D)  Cash 800 Catering Revenue 800\begin{array} { | l | r | r | } \hline \text { Cash } & 800 & \\\hline \text { Catering Revenue } & & 800 \\\hline\end{array}
E)  Accounts Receivable 800 Catering Revenue 800\begin{array} { | l | r | r | } \hline \text { Accounts Receivable } & 800 & \\\hline \text { Catering Revenue } & & 800 \\\hline\end{array}

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